CHINA RAILWAY(601390) 金融界·2025-03-28 13:04Core Viewpoint - China Railway's 2024 annual report shows a decline in both revenue and net profit, highlighting challenges in the traditional construction sector while noting growth in overseas and "second curve" businesses [1][2][4]. Revenue and Profit Decline - The company reported a total revenue of 1,160.31 billion yuan, a year-on-year decrease of 8.17%, and a net profit attributable to shareholders of 27.887 billion yuan, down 16.71% [1][2]. - The non-recurring net profit saw a significant drop of 21.21%, reflecting the overall slowdown in the construction industry and structural adjustments [2]. - New contract value signed during the reporting period was 2,715.18 billion yuan, a decrease of 12.4%, indicating weak market demand [2]. Traditional Business Challenges - The traditional construction sector faced significant pressure, with various segments showing poor performance: - Railway business new contracts amounted to 319.42 billion yuan, a slight increase of 0.3% - Road business new contracts were 167.36 billion yuan, down 24.3% - Municipal business new contracts totaled 193.63 billion yuan, down 25.9% - Urban rail business new contracts were 72.70 billion yuan, down 55.8% - Housing construction new contracts reached 921.16 billion yuan, down 19.7% [2]. Overseas Business Growth - Despite overall poor performance, the overseas business segment grew, with new contracts signed amounting to 220.9 billion yuan, a year-on-year increase of 10.6%, representing 8% of total new contracts [3]. - Significant progress was made in major international projects such as the Hungary-Serbia railway, Peru's Chancay tunnel, and Bangladesh's Padma Bridge railway connection, enhancing the company's global influence [3]. "Second Curve" Business Development - The "second curve" business segment saw new contracts worth 425.7 billion yuan, a growth of 11%, driven by active engagement in emerging markets like water conservancy, clean energy, and ecological protection [4]. - Brands such as China Railway Cultural Heritage, China Railway High-speed, and China Railway Water Services contributed to this growth, although the overall share of "second curve" business in total operations remains low [4]. - The company faces significant market challenges in 2024, with traditional construction performance dragging down overall results, but the expansion in overseas and "second curve" sectors offers new growth opportunities [4].